How Is Artificial Intelligence (AI) Disrupting Growing Retailers on the Planet?
Retail outlets are facing competition from online shopping. They are facing a threat of replacement but not completely. Though both will exist and work side by side, online shopping and eCommerce are somehow making strides.
Artificial Intelligence (AI) is taking center stage across various industries and business sectors today. In retail, AI’s usage is enabling merchants to understand customers’ needs and expectations in a much better manner. The world is becoming increasingly digital and AI is here to help.
So, what is the impact of artificial intelligence on retail? The question might seem mundane to some but is an interesting one. Artificial Intelligence has a profound impact on the retail value chain. It is quickly becoming a valuable tool for retailers looking to obtain a competitive advantage over rivals and competitors.
It has been anticipated by numerous marketing research firms that worldwide AI revenues will rise to more than USD$ 36.6 billion by the year 2025. Retail companies wishing to incorporate AI in their operations must understand how other retailers did so.
For which reasons AI is disrupting retailers?
Here are some key and strong reasons artificial intelligence (AI) has been disrupting retailers across the globe:
Improving the in-store shopping experience
Operating expenses of most retailers can be reduced by making good use of artificial intelligence to streamline in-store retail operations.
What AI can do is take over the role of assistants to help customers, remove long queues for checkouts and payments through app-based QR code checkouts and payments at QR counters, real-time stock monitoring through mobile devices, and sending requests for restocking, and digital product displays in stores and trial rooms.
AI is a boon for retailers who wish to save time and provide flawless service to their customers. Amazon has adopted technology responding to each product picked up from a store shelf. Kroger introduced smart shelf tags to cut down unnecessary expenses.
Utilizing chatbots for assistance in customer service
Omnichannel retail ensures customer connections do not end at the store’s location. Meaning retail firms have been using AI-backed chatbots which have helped raise rates of customer interaction. In short, chatbots are key to helping customers interact with stores in a productive manner.
If needed, retail companies can transfer calls to a telesales representative who can answer customer queries to frequently asked questions (FAQs), recommend alternative products, deal with complaints, gather needed information, and vice versa.
Chatbots can be trained to learn from past interactions. They can use that information for improving and personalizing their interactions with customers in the near future. H&M has a chatbot named Kik. It helps customers choose from recommended products, filters, and personal style preferences. This is the reason the clothing retailer went ahead of others in 2016.
Supply chain management with logistics need to be as effective as it can be
Each year, retailers throughout the world often lose money because of poor inventory management. This is where AI-powered logistics management systems come in to help. It can estimate demand for certain products through analysis of previous sales, locations, purchasing behaviors, and the like.
A lot of organizations have just made AI-powered drones for warehouse management which can access areas hardly reachable. This can also help in automatic updates of central databases with the availability of real-time inventory tracking.
Moreover, supply chains at retail firms, especially staffing, inventory, distribution, and delivery can be automated completely via artificial intelligence.
Understanding the client base and the element of personalization
Customers might enjoy a more personalized shopping experience thanks to Artificial Intelligence working hand in hand with retail firms. Biometric and facial recognition are the tips of the iceberg. They help retail firms recognize and retain clients, along with their preferences. In that way, they can easily recommend products and design promotional materials too.
By utilizing advanced algorithms of artificial intelligence, it is hence possible to interpret customer preferences by examining their demographic information, social media impressions, and online footprints.
Renowned consultancy Boston Consulting Group researched brands leveraging AI in understanding their customer base. They found out that brands developing customized experiences through a combination of advanced digital technology and proprietary data for customers saw their revenues rise by 6 to 10 percent, almost two to three times more than those who didn’t.
Prices can be adjusted according to market conditions
Retail is a price=-sensitive business. It can surely benefit again from AI solutions in terms of pricing. A lot of pricing models can be compared through the use of such programs and then the best price for a product can be easily determined.
Seasonal fluctuations, customer demand, and competing items can all influence the way retailers charge. If the long-term revenue AI’s assistance in pricing brings in can be considered, then it is understood to be a worthwhile investment.
Intuitive product searches
Automated product discovery is another great thing AI has brought to retail. It is now easier for customers to take a picture of the product they want and then use it to look for who is selling it online. Thanks to machine learning software, buyers can search for products and compare them more quickly and easily, than before.
Improving retail operations’ efficiency
The operation of retail stores is becoming more complex due to the proliferation of multiple channel retail operations. In warehouses, store personnel must look after a lot of duties. It never is enough for them to receive inventory, store it and keep track of it.
They are also responsible for providing product information, tracking promotional offers, and performing merchandising. Automating back-office tasks along with using robots to carry quality checks are two ways AI can help ease the work of a store manager and make it more effective. The time saved can hence be utilized much better in the warehouse.
Conclusion
Professionals from a Dubai-based mobile app development company reveal that things can be made much better in retail thanks to AI. Retail apps have made things easier for both firms and customers thanks to the utilization of AI and machine learning-based algorithms.
Moreover, these apps are facilitating shopping by helping different abled individuals to use the app with ease. With the integration of voice search (one which can understand multiple accents and numerous languages), shopping using phones has now become more fun than it was before.